Quote:
Originally Posted by dustygoon
Unreal price for a traditional business with $70-80mm of revenues. SaaS type multiple for a media business? They burn cash of course. Do you think Myrtle had equity (Toronto was 2nd town after Chicago to build a team and he was lead editor)?
|
Quote:
Originally Posted by Captain Otto
Can someone translate this please?
|
He’s saying it’s surprising the Athletic got a valuation as high as SaaS businesses when looking at their price to earnings ratio. The price to earnings ratio is commonly used as a metric the assess the value of businesses, in combination with the type and structure of the business. As mentioned, SaaS is an acronym for Software as a service which I presume he’s saying fetches a high price to revenue valuation. The Athletic are still burning cash, meaning they still aren’t profitable yet.
I don’t actually know what I’m talking about, I’m just parroting stuff from this guy:
